Solicitors & Lawyers
Legal Meanings
Term: bonus shares
1.
Shares alloted to existing shareholders in a company for profits that might have otherwise been paid out as a dividend. The transaction has the effect of turning the profits of the company into capital.
Usage: Bonus shares were issued by the company rather than issuing a dividend.
Related Words: dividend; shares; capital; capital reserve; capital reduction; share capital; capital reserve account.
Business Structures – New Corporate Options for Charities
Business Structures – Limited Liability Partnerships
Personal Liability – Company Directors' Duties Expanded
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